Business Driven Technology
Business Driven Technology
7th Edition
ISBN: 9781259567322
Author: Paige Baltzan Instructor
Publisher: McGraw-Hill Education
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Chapter 2, Problem 4RQ
Program Plan Intro

Porter’s Five Forces Model:

  • Buyer Power – The ability of the buyers to affect the price that they need to pay for an item.
  • Supplier Power – The ability to influence the prices that are charged for the suppliers.
  • Threat of substitute products or services – It will be high when there are many alternatives to a product or service and it will remain low when there are very few alternatives from which to choose.
  • Threat of new entrants – It will be high when it becomes easy for new competitors to enter a market and it will remain low when there are some entry barriers to enter a market.
  • Rivalry among existing competitors – It will be high when the competition is fierce in the market and it will remain low when competition becomes more complacent.

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